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China’s Toy Recalls: The High Cost of Low Price?

In: Not Just China

Author

Listed:
  • Hari Bapuji

Abstract

A common assumption is that product recalls are directly related to low prices, that is, low-priced products are typically recalled because they lack quality. Several analysts argue that manufacturers in the developing world, particularly in China, habitually offer a low price and good samples in order to win contracts. After that point, however, these manufacturers change their specifications and substitute cheaper materials or generally compromise on quality. These arguments imply that suppliers in the developing world, particularly in China, are simply corrupt. Others, however, argue that suppliers compromise quality due to the ever-increasing pressure to supply goods at lower prices.

Suggested Citation

  • Hari Bapuji, 2011. "China’s Toy Recalls: The High Cost of Low Price?," Palgrave Macmillan Books, in: Not Just China, chapter 0, pages 35-41, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-27648-3_4
    DOI: 10.1007/978-1-137-27648-3_4
    as

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